The Nominal Interest Rate Is 7% and the Real Interest

question 60

Multiple Choice

The nominal interest rate is 7% and the real interest rate is 2.75%.What is the inflation rate?

• A) 3.75%
• B) 4.55%
• C) 4.25%
• D) 9.75%

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Definitions:

Intangible

An asset that lacks physical substance, such as intellectual property, brand names, or goodwill.

Operations

Operations refer to the day-to-day activities involved in the running of a business for the purpose of producing value for the stakeholders.

Useful Life

The estimated time period that an asset is expected to be usable for the purpose it was acquired.